Correct Answer:
D. A fixed amount of cash is kept for petty expenses and replenished on submission of vouchers
The advance is restored to its original amount after accounting for expenses.
November 13, 2026 · Accounting and Finance MCQs, Public Sector Accounting & Auditing MCQs
The imprest cash system in a government office means that:
Related MCQs
Diversification can eliminate:
A.
Unsystematic (specific) risk
B.
Systematic risk
C.
Inflation risk of the whole economy
D.
Market risk entirely
Correct answer is:
A. Unsystematic (specific) risk
Do you agree with this answer?
The financial year of the Federal Government of Pakistan runs from:
A.
1 January to 31 December
B.
1 April to 31 March
C.
1 October to 30 September
D.
1 July to 30 June
Correct answer is:
D. 1 July to 30 June
Do you agree with this answer?
Public debt is best described as:
A.
The accumulated stock of past government borrowing
B.
The annual budget deficit only
C.
The tax revenue of a year
D.
The money supply
Correct answer is:
A. The accumulated stock of past government borrowing
Do you agree with this answer?
EBIT is Rs. 300,000 and interest expense is Rs. 60,000. The times interest earned ratio is:
A.
0.2 times
B.
4 times
C.
6 times
D.
5 times
Correct answer is:
D. 5 times
Do you agree with this answer?
Under absorption costing, fixed manufacturing overhead is treated as:
A.
A period cost charged fully to the current period
B.
A selling expense
C.
A product cost included in inventory valuation
D.
An abnormal loss
Correct answer is:
C. A product cost included in inventory valuation
Do you agree with this answer?
Cost-benefit analysis of public projects compares:
A.
Only the private profits
B.
Social costs and social benefits of the project
C.
Only the initial costs
D.
Tax revenue with expenditure of the entire government
Correct answer is:
B. Social costs and social benefits of the project
Do you agree with this answer?
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